Bill Analyses and Ratings
Bill Information: H0594 – Property Tax Late Charge Distribution Amendment
Bill Summary
House Bill 594 amends three sections of Idaho Code to establish a new formula for distributing late charges and interest collected on delinquent property taxes. The bill requires county auditors to apportion these penalty revenues among all taxing districts (cities, school districts, road districts, etc.) in proportion to each district’s share of total property tax collections countywide.
Currently, Idaho law requires county tax collectors to remit all property taxes, late charges, and interest to county auditors, but does not specify how penalty revenues should be distributed among the various taxing entities. This bill fills that gap by adding explicit language in Section 63-903(6) directing proportional distribution. The bill also updates Sections 63-1201 and 63-1202 to clarify that monthly settlements and transmittals between tax collectors, auditors, and taxing districts must include late charges and interest along with base property taxes.
The legislation includes an emergency clause making it effective July 1, 2026. The changes are procedural in nature, affecting only the internal accounting and distribution mechanisms for penalty revenues already being collected under existing law.
Overall Assessment
This bill establishes a proportional distribution formula for property tax late charges and interest among Idaho’s various taxing districts. The change ensures that school districts, cities, road districts, and other local government entities receive penalty revenues in proportion to their share of property tax collections, rather than leaving the distribution method unspecified. The bill is purely administrative, clarifying accounting procedures without changing tax rates, penalty amounts, or taxpayer obligations.
Rating Breakdown
ARTICLE I. RESPONSIBILITY IN GOVERNMENT (0)
The bill addresses how existing penalty revenues are distributed among government entities but does not reduce taxes, cut spending, or change the overall tax burden on citizens. The amendments in Sections 63-903, 63-1201, and 63-1202 establish accounting procedures for revenues already being collected under current law. While the bill improves administrative clarity in government operations, it does not substantively affect the size, scope, or fiscal responsibility of government.
ARTICLE II. CITIZEN INVOLVEMENT IN GOVERNMENT (0)
The bill modifies internal accounting procedures between county tax collectors, auditors, and taxing districts. It contains no provisions related to citizen participation, electoral processes, government transparency, or public involvement in decision-making. The changes affect only how government entities settle accounts with each other.
ARTICLE III. EDUCATION (0)
While school districts are among the taxing entities that will receive apportioned late charges and interest under the new formula, the bill does not address education policy, curriculum, parental rights, school choice, or education funding levels. The proportional distribution mechanism applies equally to all taxing districts without special provisions for schools.
ARTICLE IV. AGRICULTURE (0)
The bill addresses property tax penalty distribution procedures and contains no provisions related to agricultural education, farm trade, water rights for agriculture, or family farming operations. The administrative changes apply uniformly across all property types and taxpayers.
ARTICLE V. WATER (0)
The bill modifies tax collection settlement procedures and does not address water appropriation, inter-basin transfers, reservoir development, or federal water policy. The changes are unrelated to water resource management.
ARTICLE VI. NATURAL RESOURCES AND ENVIRONMENT (0)
The bill establishes accounting procedures for property tax penalties and contains no provisions related to environmental stewardship, natural resource utilization, federal land policy, or wilderness designation. The administrative changes do not affect environmental or resource management.
ARTICLE VII. ENERGY (0)
The bill addresses property tax penalty apportionment and contains no provisions related to energy independence, resource development, oil and gas exploration, hydroelectric power, or utility regulation. The changes are unrelated to energy policy.
ARTICLE VIII. IDAHO NATIONAL LABORATORIES (0)
The bill modifies tax collection procedures and contains no provisions related to Idaho National Laboratory, nuclear research, technology development, or INL operations. The administrative changes do not affect INL policy.
ARTICLE IX. PRIVATE PROPERTY RIGHTS (0)
The bill addresses how government entities distribute penalty revenues among themselves but does not change property tax rates, create new property regulations, affect eminent domain procedures, or alter property owners' rights. The amendments in Sections 63-903, 63-1201, and 63-1202 are internal government accounting procedures that do not impact property ownership or development rights.
ARTICLE X. STATE AND FEDERAL LANDS (0)
The bill establishes property tax penalty distribution procedures and contains no provisions related to federal land management, state land administration, or reducing federal land ownership. The changes are unrelated to land management policy.
ARTICLE XI. WILDLIFE MANAGEMENT (0)
The bill modifies tax collection settlement procedures and contains no provisions related to fish and game management, hunting, fishing, wildlife access, or predator control. The administrative changes do not affect wildlife policy.
ARTICLE XII. ECONOMY (0)
The bill addresses administrative procedures for distributing existing penalty revenues among government entities but does not regulate commerce, reduce business burdens, affect labor policy, or promote economic growth. The proportional distribution formula in Section 63-903(6) is a government accounting mechanism that does not impact private sector economic activity.
ARTICLE XIII. HEALTH AND WELFARE (0)
The bill establishes property tax penalty apportionment procedures and contains no provisions related to healthcare delivery, health insurance, patient rights, welfare programs, or medical decision-making. The changes are unrelated to health and welfare policy.
ARTICLE XIV. AMERICAN FAMILY (0)
The bill modifies tax collection settlement procedures and contains no provisions related to family values, parental authority, marriage, abortion, or child protection. The administrative changes do not affect family policy.
ARTICLE XV. OLDER AMERICANS (0)
The bill addresses property tax penalty distribution among taxing districts and contains no provisions specifically affecting older Americans, retirement, senior services, or policies targeting elderly populations. The changes apply uniformly across all taxpayers regardless of age.
ARTICLE XVI. LAW AND ORDER WITH JUSTICE (0)
The bill establishes tax collection accounting procedures and contains no provisions related to gun rights, criminal justice, death penalty, drug policy, incarceration, juvenile justice, or state sovereignty in law enforcement. The changes are unrelated to law and order policy.
ARTICLE XVII. NATIONAL DEFENSE – SECURING THE BORDER (0)
The bill modifies property tax penalty apportionment procedures and contains no provisions related to military affairs, veterans, national defense, border security, or National Guard operations. The administrative changes do not affect defense or border policy.
ARTICLE XVIII. ELECTION OF JUDGES AND IDAHO SUPREME COURT JUSTICES (0)
The bill addresses tax collection settlement procedures and contains no provisions related to judicial elections, judicial selection methods, or constitutional interpretation principles. The changes are unrelated to judicial policy.
ARTICLE XIX. RELIGIOUS LIBERTY (0)
The bill establishes property tax penalty distribution procedures and contains no provisions related to religious freedom, free exercise of religion, conscience protections, or government interference in religious practices. The changes are unrelated to religious liberty.